Several changes to Nevada’s regulations regarding private gaming rooms, known colloquially as salons, were approved 5-0 by the Nevada Gaming Commission last week after nearly a year of industry collaboration.
On Tuesday, via notice, the commission announced the adoption of the changes, which had been sought by the industry.
Salon regulations were implemented in 2001 and were modified in 2008 before the latest round of consultations began last December. At every instance, the conversation was inspired by the same purpose – to better accommodate high-level customers in the hopes of keeping their play in-state.
In 2001, this was in response to uncertainty following the 9/11 attacks. The 2008 changes came at the height of the Great Recession. But the last few years, by contrast, have been very good for the state’s industry. Coming out of Covid shutdowns in mid-2020, the state set three consecutive fiscal year revenue records before slipping back slightly in FY25.
Still, operators are looking for ways to keep the state, especially Las Vegas, competitive. Those efforts have kicked into overdrive this year, as the city’s decline in tourism has become a national storyline. And from a regulatory perspective, Las Vegas’ reputation has also been impacted by multimillion-dollar anti-money laundering fines against Wynn, MGM and Resorts World this year alone.
Loosening salon regulations, as the board agreed to do, could generate more traffic while ensuring more scrutiny of high-level play. Still, it remains to be seen whether the changes will meaningfully move the needle.
The biggest updates yet to Nevada gaming salon rules
Original salon regulations were quite restrictive. They were subsequently eased to assist operators, and the newest changes further that effort.
The original credit and/or deposit threshold to enter a Nevada gaming salon was $500,000. Slot machines in salons had to be set with minimums of at least $500, and any guests of salon patrons could only remain in the salon for six hours without the main patron being present, among other rules. In 2008, the credit/deposit threshold was lowered to $300,000.
Wynn, MGM and Hard Rock, in conjunction with the Nevada Resort Association (NRA), lobbied for several changes this time around. In the end, not all were adopted, but some of the final draft amendments included:
- Lowering the baseline deposit/credit threshold to $20,000;
- Allowing operators to apply for the right to set their own minimums based on proven salon experience;
- Establishing poker as a game eligible for salon play;
- Establishing a $20,000 buy-in minimum to commence a poker game, including a $10,000 minimum buy-in per player;
- Lengthening the period that a salon patron’s guest may play in a salon without the patron present from six to 24 hours.
The NRA and its members advocated for no baseline minimums, but this was essentially granted by allowing licensees to apply to set their own. Including poker as a salon game was another key concession, although regulators kept a per-player minimum instead of allowing one player to bankroll the table.
After the previous salon hearing in August before the Nevada Gaming Control Board, NRA CEO Virginia Valentine applauded the draft changes that were ultimately confirmed. She told iGB the new rules “reflect a balance of needs for the industry and for regulators. That’s key to creating any effective public policy”.
Concerns not enough to prevent approval
Given that salon changes potentially create more anti-money laundering stressors while addressing tourism challenges, commissioners took a cautious approach and gave lengthy discussion to the matter before approval. Some, like Commissioner Rosa Solis-Rainey and Chair Jennifer Tagliotti, sought clarity on guest classifications.
The requirements differentiate between main patrons and their guests. The rules are more stringent for the patrons, but guests may also wager, which caused some confusion for commission members.
One concession the industry received was lengthening the time a guest may stay in a salon without the main patron to 24 hours. But commissioners questioned why this was necessary and worried about nefarious practices while debating exact language.
“A lot can happen in 24 hours,” Tagliotti cautioned. “The girlfriend leaves and comes back and she’s no longer the girlfriend. Or there’s certain financial arrangements between them that violate Nevada law, or other things.”
Commissioner George Markantonis, for his part, questioned whether operators were distorting the true purpose of salons. He noted that they are intended only for gaming, “not a VIP concierge lounge”. And despite approving the changes, Markantonis also made sure to address the AML elephant in the room.
“With all of the AML problems that we’ve encountered over the last six months … there’s obviously been difficulty for the casinos to control their customers and their hosts on top of it,” he lamented. While not mentioned directly, both Wynn and MGM were among those fined this year.
Operators granted concessions but future use uncertain
The requests from operators, and their responses to regulators’ questions, essentially amounted to a simple mantra: we can make use of this resource, if you trust us. These companies have already operated Nevada gaming salons, despite their existing limitations, for years. Lower thresholds allow for more patrons to be accommodated and therefore tracked and rated in casino systems.
Along with Valentine, Wynn Las Vegas casino chief Charlie Stone was a constant figure in salon discourse. MGM’s legal counsel, Chandler Pohl, and Hard Rock Las Vegas President Joe Lupo also appeared previously, but did not last week.
Stone explained many times that salon play is more closely scrutinised than any other play, with a higher ratio of employees to players. It is an “extension” of public high-limit areas, he said last week.
“The games that are in salons are the exact same games with the same rules, the same payouts and, as I mentioned, better surveillance coverage,” he told the commission.
Wynn did not respond to a request for comment, but said previously it would await a final ruling from the commission before making operational changes. MGM declined comment, deferring instead to the NRA. Hard Rock is still under construction and is not slated to open until late 2027.
Access to Nevada gaming salons, or private high-limit rooms, is about to become easier.